| REO lists are an invaluable tool for every foreclosure | | | | Typical REO lists will contain information about all |
| real estate investor. If you are an investor looking to | | | | aspects of the property's foreclosure history as well |
| buy bank-owned foreclosed properties, these lists can | | | | as the property's characteristics, to help you make that |
| serve as your pipeline for leads. Most | | | | decision. Some of the information contained therein |
| subscription-based foreclosure REO lists are updated | | | | includes: |
| daily or weekly, so you will never have a shortage of | | | | 1. Property address. |
| leads to chase. | | | | 2. What type of property it is. (eg- single family home, |
| REO, for the uninitiated, stands for "Real Estate | | | | condo, townhouse, multi-unit apartment building, etc.) |
| Owned". What it basically means is that if a property in | | | | 3. The year the property was built. |
| foreclosure is up for sale at an auction but nobody | | | | 4. Configuration of the property (bedrooms, square |
| buys it, the bank holding the foreclosing mortgage will | | | | footage, etc.) |
| automatically take possession of the property, and the | | | | 5. Unpaid real estate property taxes levied against the |
| homeowners who dwell therein will be forced to | | | | property. |
| vacate it if they haven't already. | | | | 6. The balance due on the mortgage - this serves as |
| The advantages of investing in REOs are that you | | | | the basis for the minimum amount the bank would be |
| don't have to deal with homeowners, you don't have | | | | willing to sell the property for. |
| to enter into a bidding war at an auction. You can | | | | 7. When the house was "REO'ed". This is the date that |
| simply contact the bank and submit an offer to | | | | the last auction took place at which nobody bought the |
| purchase the vacant property. | | | | property and thus the property ownership was |
| But not every REO property is automatically a deal | | | | transferred to the bank. |
| worth investing in. You have to research all of the | | | | 8. CMAs - Comparative market analysis - to give you |
| details about the property in order to make an | | | | an idea of how much the property might be worth. |
| informed decision about whether or not it would be a | | | | 9. Date last sold - When was the property bought by |
| profitable buy: How much would you be buying the | | | | the last homeowner before it was foreclosed, and |
| property for? How much would you need to spend on | | | | how much was the sale amount at that time. |
| repairs:? How much would the property sell for after | | | | 10. The bank's contact information. |
| repairs? | | | | |